Common use of Bid Selection Clause in Contracts

Bid Selection. After reviewing the amount of each bid submitted by a contractor in accordance with City requirements, the City shall select the lowest responsible bid (the “Recreation Center Bid Amount”) and shall award the job to such contractor (the “Recreation Center Contractor”). A “responsible bid” is one that meets the prescribed specifications required by the bidding instructions. Notwithstanding the aforesaid, if the lowest bid exceeds $25,000,000 (minus the Recreation Center Architect’s Fee and the Purchase Price), the City shall have thirty (30) days from the date the City opens the bids, to give notice to each of the other Parties that it is electing to terminate the Agreement and no Party shall have any obligation or liability to any other Party hereunder after such termination except as stated in the next paragraph and Section 7.04. The Parties agree to act in good faith in connection with this provision, since each Party acknowledges that each of the Parties will have made substantial expenditures in connection with the Property, the Recreation Center and the Infrastructure Improvements. Notwithstanding the aforesaid, if the City elects to terminate this Agreement in accordance with the preceding paragraph, the City will: (a) reimburse RCP for RCP’s actual costs incurred to prepare the Pad Site to Pad-Ready Condition (which shall include the actual costs of Bliss Sports II plus a reasonable construction management fee to be mutually agreed upon by the Parties, but not to exceed ten (10%) prior to the bidding process as is provided for in the Purchase Agreement), (b) pay the Recreation Center Architect’s Fees and (c) the City’s monetary contribution to the cost of Infrastructure Improvements, as the same may be modified, will be negotiated in good faith by the Parties, and is subject to approval by the governing body of the City.